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S. B. No. 260 As Introduced

As Introduced

130th General Assembly

Regular Session

2013-2014

S. B. No. 260

Senator Patton

Cosponsors:
Senators Balderson, Hite

A BILL

To amend section 4517.12 of the Revised Code to
prohibit the Registrar of Motor Vehicles from
issuing a motor vehicle dealer's license or motor
vehicle leasing dealer's license to a motor
vehicle manufacturer for the retail sale or lease
of new or used motor vehicles.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 4517.12 of the Revised Code be
amended to read as follows:

Sec. 4517.12. (A) The registrar of motor vehicles shall deny
the application of any person for a license as a motor vehicle
dealer, motor vehicle leasing dealer, or motor vehicle auction
owner and refuse to issue the license if the registrar finds that
the applicant:

(1) Has made any false statement of a material fact in the
application;

(2) Has not complied with sections 4517.01 to 4517.45 of the
Revised Code;

(3) Is of bad business repute or has habitually defaulted on
financial obligations;

(4) Is engaged or will engage in the business of selling at
retail any new motor vehicles without having written authority
from the manufacturer or distributor thereof to sell new motor
vehicles and to perform repairs under the terms of the
manufacturer's or distributor's new motor vehicle warranty, except
as provided in division (C) of this section and except that a
person who assembles or installs special equipment or accessories
for handicapped persons, as defined in section 4503.44 of the
Revised Code, upon a motor vehicle chassis supplied by a
manufacturer or distributor shall not be denied a license pursuant
to division (A)(4) of this section;

(5) Has been guilty of a fraudulent act in connection with
selling or otherwise dealing in, or leasing, motor vehicles, or in
connection with brokering manufactured homes;

(6) Has entered into or is about to enter into a contract or
agreement with a manufacturer or distributor of motor vehicles
that is contrary to sections 4517.01 to 4517.45 of the Revised
Code;

(7) Is insolvent;

(8) Is of insufficient responsibility to ensure the prompt
payment of any final judgments that might reasonably be entered
against the applicant because of the transaction of business as a
motor vehicle dealer, motor vehicle leasing dealer, or motor
vehicle auction owner during the period of the license applied
for, or has failed to satisfy any such judgment;

(9) Has no established place of business that, where
applicable, is used or will be used for the purpose of selling,
displaying, offering for sale, dealing in, or leasing motor
vehicles at the location for which application is made;

(10) Has, less than twelve months prior to making
application, been denied a motor vehicle dealer's, motor vehicle
leasing dealer's, or motor vehicle auction owner's license, or has
any such license revoked;

(11) Is a manufacturer, or a parent company, subsidiary, or
affiliated entity of a manufacturer, applying for a license to
sell or lease new or used motor vehicles at retail. Nothing in
division (A)(11) of this section shall prohibit a manufacturer
from disposing of motor vehicles at wholesale at the termination
of a consumer lease through a motor vehicle auction. Division
(A)(11) of this section shall not serve as a basis for the
termination, revocation, or nonrenewal of a license granted prior
to the effective date of this amendment.

(B) If the applicant is a corporation or partnership, the
registrar may refuse to issue a license if any officer, director,
or partner of the applicant has been guilty of any act or omission
that would be cause for refusing or revoking a license issued to
such officer, director, or partner as an individual. The
registrar's finding may be based upon facts contained in the
application or upon any other information the registrar may have.
Immediately upon denying an application for any of the reasons in
this section, the registrar shall enter a final order together
with the registrar's findings and certify the same to the motor
vehicle dealers' and salespersons' licensing board.

(C) Notwithstanding division (A)(4) of this section, the
registrar shall not deny the application of any person and refuse
to issue a license if the registrar finds that the applicant is
engaged or will engage in the business of selling at retail any
new motor vehicles and demonstrates all of the following in the
form prescribed by the registrar:

(1) That the applicant has posted a bond, surety, or
certificate of deposit with the registrar in an amount not less
than one hundred thousand dollars for the protection and benefit
of the applicant's customers except that a new motor vehicle
dealer who is not exclusively engaged in the business of selling
remanufactured vehicles shall not be required to post the bond,
surety, or certificate of deposit otherwise required by division
(C)(1) of this section;

(2) That, at the time of the sale of the vehicle, each
customer of the applicant will be furnished with a warranty issued
by the remanufacturer for a term of at least one year;

(3) That the applicant provides and maintains at the
applicant's location and place of business a permanent facility
with all of the following:

(a) A showroom with space, under roof, for the display of at
least one new motor vehicle;

(b) A service and parts facility for remanufactured vehicles;

(c) Full-time service and parts personnel with the proper
training and technical expertise to service the remanufactured
vehicles sold by the applicant.

Section 2. That existing section 4517.12 of the Revised Code
is hereby repealed.